The Oncology Institute Inc Up 36.24% To $2.51 After Earnings Miss

Oncology Institute Inc (TOI) reported less than expected earnings this afternoon for Q3 2023.

The consensus among analysts for The Oncology Institute Inc was for an earnings per share (EPS) loss of $0.13 per share. The firm failed to meet those projections, reporting an EPS loss of $0.19 per share, a negative surprise of $0.06 (-46%). Profits fell 12% year-over-year after reporting an EPS loss of $0.17 per share in its year-ago quarter. The negative growth rate signals that the Healthcare company isn't performing well amid current economic conditions.

Consensus estimates for The Oncology Institute Inc revenue averaged out to $74.7 million, with the business managing to beat those expectations with reported third-quarter revenue of $82 million. The $7.4 million (10%) positive revenue surprise led to 26% growth year-over-year as the firm reported revenue of $65 million in its year-ago quarter. The lower earnings growth compared to revenue points to The Oncology Institute Inc not being able to improve its profit margin.

The stock is up 36.24% to $2.51 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Neutral Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 58. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

The Oncology Institute Inc offers oncology services committed to improving cancer prevention, diagnosis, treatment, research, and education. The company provides services including infusion centres. In-house dispensary, Outpatient blood transfusion, Outpatient stem cell transplant, financia, counseling, clinical trials, comprehensive lab testing, and end-of-life counseling.The business operates in three operating segments dispensary, patients services and clinical trials and others. Key revenue is earned from providing patient services.